Leadership Theories

Leadership Theories Theorists have formulated several leadership theories in the past. Leadership styles and theories which were used several years ago are not the same as the ones used today. Hernsey and Blenchard’s theory of situational leadership allows leaders to adopt various leadership styles that match with development levels of their followers.Advertising We will write a custom essay sample on Leadership Theories specifically for you for only $16.05 $11/page Learn More Leaders adopt leadership styles which are dependent on readiness and willingness of their followers to perform required tasks. When followers are not mature, their competence and motivation of is low, but it increases as they mature (Hernsey and Blenchard, 1976). According to McGregory (1960), theory X and theory Y assumptions encompasses style, behavior, situation, and adaptation to the situation. These theories resulted in development of other situational theories. Fried Fielder’s (1967) c ontingency theory argues that there is no one best way of leading. It identifies situations when task-oriented approach is more effective, and when a relationship style would be more productive. Fielder concluded that task-oriented leaders are effective when conditions are either very favorable for the leader or which are very unfavorable for the leader (Fiedler, 1967, p.13). When situation is favorable, members are ready and willing to work because their leaders support job performance. When conditions are unfavorable, group members will need to remain goal-oriented for them to achieve any success. In stressful situations, a leader’s structure and control can remove undesirable ambiguity and the anxiety that goes with it (Fielder, 1967). In Hersey/Blanchard theory of situational leadership model, there is no best way to lead. Leaders must be able to adapt to situations and modify their leadership style to be more effective. The level of maturity of a group will determine the most effective leadership style (Hersey and Blanchard, 1976). A leader assesses maturity of a group to come up with the amount of guidance needed. Immature group requires direction and goal-oriented behavior from their leader. At this stage, task-oriented leadership is required since followers are eager to accept guidance when they feel uncertain about a task. As a group matures, it builds a relationship with its leader.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Task-related behavior decrease as relationship behavior takes charge. A two-way communication develops and members are involved by their leader in decision making. As maturity increases, the leader delegates responsibility to the next step in the process (Hersey and Blanchard, 1976). In contingency theory, leadership style is determined by situations and can only be changed based on the relationship between members and their leaders. A leader can adopt a leadership style and use it as situation may demand. On the other hand, Hersey/Blanchard theory of situational leadership model depends on maturity of group members for a leadership style. Immature group requires close guidance and one-way communication where the members are told what to do, when and how they do it. Leadership style changes to a relationship when a group is mature enough. The style later changes to a two-way communication where members are involved in decision making and responsibilities delegated. Role of Leaders in Organizational Ethics Leaders play an important role in developing ethical business organizations. If a manager does not portray a positive behavior, other employees are likely to follow suit and business organization become unethical. Leaders should use idealistic visions and persuasive communication styles to motivate their followers. Ethical behaviors have a role in credibility, and the ability of leaders to ha ve a positive influence on their followers (Piccolo et al. 2010). Ethical leadership captures employees’ perceptions of ethical behavior inferred from leader’s conduct. When leaders demonstrate a normative appropriate conduct through personal actions and interpersonal relationships, and promote such conduct to their followers through communication, reinforcement and decision making, the result is ethical organization. Trustworthy leaders are proactive and are expected to increase cooperation among employees to promote organizational identification. This will have a positive improvement in performance and ethics in a business organization. Ethical leadership increases organizational identification.Advertising We will write a custom essay sample on Leadership Theories specifically for you for only $16.05 $11/page Learn More Organizations which have leaders with poor ethics rank poorly in public and this may have a negative effect on business (Wa lumbwa et al. 2010). Exchange of positive behaviors between ethical leaders and members through trust, open communication, information sharing and liking of followers, contribute to ethical behavior in an organization. According to Bandura (1977), leaders influence their followers by way of modeling process. This is one of the most powerful ways of transmitting values, attitudes and behaviors. Employees learn how to do something by observing their leaders. Leaders can be good models by virtue of their assigned roles, their status, success in the organization and the power to affect the behavior and outcomes of their followers in an organization (Bandura, 1977). Leaders act as role models to their junior employees. Even when other employees do not envy their leader, portraying ethical behavior will ensure that all employees emulate deeds of their leaders. Leaders who are not honest or trustworthy are likely to encourage dishonesty and lack of trust among their followers. Leaders gain trust of their followers when they act in a generally acceptable and consistent manner regarding how leaders should behave in a workplace. References Bandura, A. (1977). Social Learning Theory. Englewood Cliffs, NJ: Prentice Hall. Fiedler, F.E. (1967). A Theory of Leadership Effectiveness. New York: Mcgraw-Hill. Hersey, P., Blanchard, K. (1972). Management of Organizational Behavior: Utilizing Human Resources (2nd ed.) New Jersey: Prentice Hall.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Mcgregor, D. (1960). The Human Side of Enterprise. New York: Mcgraw-Hill. Piccolo, R. F., Greenbaum, R., Hartog, D.N., Folger, R. (2010). The Relationship between Ethical Leadership and Core Job Characteristics. Journal of Organizational Behavior, 31, 259–278. Walumbwa, F.O., Mayer, D.M., Wang, P., Wang, H., Workman, K., Christensen, A.L. (2010). Linking Ethical Leadership to Employee Performance: The Roles of Leader–Member Exchange, Self-Efficacy, and Organizational Identification. Organizational Behavior and Human Decision Processes, 115, 204–213.

Were the colonies justified to essays

Were the colonies justified to essays Were the colonies justified to declare independence? In 1763 after the war between the French and Indians and the English started the send more troops into the US and started to make new laws to get more money to Britain from the US. Even though the British had won the war they had a lot of financial trouble. They had now huge debts and they had to repay them somehow. These debts were too large for the English to pay so they thought that they could get all the money out of the colonies. Of course the Americans didnt like this and this is the reason that they declared their independence. The British started many different acts and duties like the Stamp Act which put taxes on almost everything written, the Sugar Act which put taxes on sugar, coffee and wines that were imported to the US in substantial amounts, Quartering act which wasnt a tax but the Americans had to feed the British soldiers sent to America. The British thoughts about there rights to tax the colonies are written by Thomas Whately in his pamphlet considerations The Colonists of course disliked and hated these taxes and started protesting against them. There where many incidents where the colonist attacked the British or the other way around. Maybe some of the most famous are the burning of the Ship Gaspee, the Boston massacre and Boston tea party. The Boston massacre wasnt really a massacre because only 5 people died but it made the colonist furious. This happened in 1770. After the massacre also the Boston tea party happened here. This time the Sons of liberty were behind it. The English very mad at the colonist for the resistance and killing of their soldiers but they didnt understand that the Americans didnt like their new laws and taxes and they continued to ad new ones and wouldnt change the old ones. Of course this furiated the Americans because the taxes were really too high and the only pur ...

Marketing Essay Example | Topics and Well Written Essays - 1500 words - 7

Marketing - Essay Example In other words, these accounts must be identified, acquired, and followed up, or managed. The sales person/force and manager must also be rewarded accordingly. Key accounts are gained by developing a mutual relationship. In order to gain trust and repeat business and to â€Å"lead† the client and not the other way around (having the client lead the sales representative which results in a loss of sales), one must completely know and understand the client’s business. This can only be accomplished by having a strategy. Key Account Management (2006) lists the benefits of this type of handling such important accounts: Regarding the case study of Glaztex, the reasons for failure to win the order were many. They did not employ the strategies of proper key account management. Dr. Leblanc of Commercial SA had initially contacted sales executive John Goodman. That was an incredible â€Å"foot in the door† where Goodman should have researched and prepared before returning the call. Perhaps he did not have the proper training on key account management, which is very crucial. Most company training involves teaching staff how to sell to corporations and to large accounts which uses a skill-based training. On the other hand, key account management deals with the clients’ needs and uses strategy. (Bandhu, 2004.) Capon (2006) states that, â€Å"†¦it is one thing to recognize that these accounts should be treated differently, it is quite another to figure out exactly what to do.† So training is necessary. Goodman simply described the simply and gave Leblanc literature to read. As Leblanc had stated that he had already spoken with three other companies, Goodman needed to be well informed of not only what his company had to offer, he also needed to know about his possible client and the competitors. He needed to focus on value. An advantage would have been for him to tell and show Leblanc (and Atois, the production engineer, as he stated that

Topic Selection Essay Example | Topics and Well Written Essays - 1000 words

Topic Selection - Essay Example visit to the branch and for this I need to create a list of employees that are working there and who would be in a position to give me information regarding the issues that they are facing. I can access the names of the people that I want to interview and I have to remember to tell them to keep the interview and the material that would be discussed in the interview confidential. As part of my interview process, I have to ensure that the company is meeting all its contractual obligations and that it is fulfilling the regulatory and compliance policies in this regard. This would include the questions about why the company is not paying employees for overtime and who is overseeing the employees at the branch office. These are the basic questions that I intend to seek answers for. Further, the question that why not all employees are complaining needs to be answered as well. As a HR manager, I have to find out if there are other reasons for employees quitting and since the process of attrition comes under the HR manager’s competency as well, I need to find out and take appropriate steps to stop the flow of employees leaving the organization. After I have framed the questions, I have to prepare a questionnaire of sorts and then take it to the employees of the branch office and get their answers to the same. Finally, as part of the researching assignment, I have to design surveys to be used by the employees. Now comes the part where I have to organize the material and this would require merging the answers from the employees by collating all the responses and then consolidating the information that is given in the surveys. I have to list down the problems that are being faced by the employees and then find the solutions for each. It would help if I can list down the problems in a bullet point format and create a matrix where the solutions are listed against the problems that have been described so far. After the surveys and the collection of data, I need to find

Urban Life in the Middle Ages Essay Example for Free

Urban Life in the Middle Ages Essay The book â€Å"Urban Life in the Middle Ages† by Keith D. Lilley discusses historical development and urban changes affected urban population during the Middle Ages. The author claims that: †the Middle Ages is a contested heritage – it means different things for different people† (p. 21). Lilley describes a medieval town as the main regional and even cultural unit which kept traditions, values and unique way of life. The book consists of an introduction, 7 chapters, conclusions, tables, figures and plates. The first three chapters address urban culture and heritage, legal foundations of towns and the main institutions. The author describes medieval culture and legacies, the main factors and driven forces of change. Also, Lilley draws a line between medieval urban heritage and contemporary culture stating that â€Å"medieval urbanism impinges upon the modern age’ (p. 17). The second chapter describes the main institutions and their impact on and role in urbanism. Lilley pays a special attention to chartered towns, functions of municipal government and urban governance. The fourth chapter discusses emergence of and development of towns in England and Wales, France and in east Central Europe. Lilley explains that in many countries, towns’ population was numbered thousands rather than hundreds, and the city was clearly differentiated from the rural settlements around it. Within the city, however, population, as not particularly dense, and certainly was not uniformly distributed. Lilley suggests that a significant proportion of the area within towns was used for agriculture or viniculture, while a town remained a center of cultural, religious and material life. The fifth and the sixth chapters are devoted to urban planning and ownership. Lilley writes that urban population paid much attention to landscapes and urban planning which marked city’s identity and national culture. Lilley gives examples of urban designs, structure of urban settlements and location of the central part and periphery of the city. The sixth chapter describes the main types of property rights and landholding. The fundamental fact about the property rights was their fragmentation. Holdings were scattered over a wide area: a couple of holdings in one settlement, a vineyard in the next, an estate in the next still. Even within rural settlements large, compact blocks of land or sizable estates comprising an entire settlement were extremely rare. In the seventh chapter, Lilley describes domestic life and personality of townspeople, their values and preferences, way of life and traditions, occupations and trade. The book does not have a separate chapter for church and its impact on town life, but Lilley discusses the problems and issues of churches in every chapter. He underlines that religion played a crucial role in lives of medieval people determining their way of life and traditions. Churches were predominantly found in urban contexts, and monastic foundations were increasingly favored by the elite. The surrounding countryside was dotted with small family monasteries, nunneries and proprietary churches. A society in which rural elites were increasingly prepared to invest in a local church or a family monastery was one in which they might also be prepared to make donations to large-scale monastic foundations to build up their local prestige. I would recommend this book to everyone interested in history and sociology, archeology, urban planning and cultural studies. The book is based on substantial analysis of resources and historical documents, and involves excellent illustrative materials for every chapter. A unique vision of historical development and comparative analysis with modern city planning and culture Works Cited 1. Lilley, K. D. Urban Life in the Middle Ages: 1000-1450 (European Culture and Society). Palgrave Macmillan, 2002.

Both Sides of Capital Punishment Essay -- social issues

Both Sides of Capital Punishment Murder is the unlawful killing of another human being with an intentional or criminal intent. In today's world, terrible crimes are being committed daily. Many believe that these criminals deserve one fate: death. Capital punishment, the death penalty, is the maximum sentence used in punishing people who kill another human being - and is a very controversial method of punishment. In most states, a person convicted of first degree murder has the potential to be given the death penalty. Capital punishment is a subject that can be counted upon to stir emotion and controversy into any conversation or argument. The very concept provokes a profusion of valid questions and opinions. Today's daily world of crime and violence calls for punishment of a severe nature, and many citizens argue that the punishment necessary is the death penalty. These people quote passages such as the "an eye for an eye, tooth for a tooth" concept from the Old Testament of the Judeo-Christian bible. Some people take the neutral position that there is no right or wrong answer, that each opinion on capital punishment is valid in its own way. Opponents of the death penalty claim that sentencing a person to death does not change the reality of the situation; the harm already done simply cannot be fixed from a vengeance standpoint. You cannot bring the murdered person back by taking the prisoner's life. Proponents of capital punishment tend to defend their opinion mainly on two grounds: death is a fitting punishment for murder, and executions maximize public safety through incapacitation and deterrence. The view of proponents of the death penalty in reference to the "let the punishment fit the crime" ideal is that, in the eyes of many law officials and citizens of the United States, if a crime is so serious that it causes irreversible damage or the loss of human life, then the only penalty for such crimes would be death for the individual that committed this act. Many also feel that if an individual can possess the strength and will to take the life of another human being in a planned manner, then they must also in turn be able to face their punishment which could only be a punishment of the same magnitude as the crime they have committed; that being for their life to be ended for the common good. These people feel that, while it is the cruelest pu... ...ng the Revolutionary War, once said, "I shall ask for the abolition of the punishment of death until I have the infallibility of human judgment demonstrated to me." Some radical death penalty opposers even go so far as to claim that those who support such punishment with the excuse of "an eye for an eye, a tooth for a tooth" are like immature children who continue to insist on the principle of childish payback and petty revenge. They sy that these people did not listen to their mothers when they were told "two wrongs do not make a right." They say these men and women have not grown out of a tendency toward violence and a shunning of the virtues of mercy and forgiveness, in addition to morality. Opposing the death penalty does not mean sympathy with convicted murderers. On the contrary, murder and manslaughter both demonstrate a lack of respect for life. For this very reason, a policy of state-authorized killings is immoral. Criminals no doubt need to be punished, but severity of punishment should have its limits, beginning with the use of human dignity. Governments that respect these limits do not use premeditated and violent homicide as an instrument of keeping the peace. Both Sides of Capital Punishment Essay -- social issues Both Sides of Capital Punishment Murder is the unlawful killing of another human being with an intentional or criminal intent. In today's world, terrible crimes are being committed daily. Many believe that these criminals deserve one fate: death. Capital punishment, the death penalty, is the maximum sentence used in punishing people who kill another human being - and is a very controversial method of punishment. In most states, a person convicted of first degree murder has the potential to be given the death penalty. Capital punishment is a subject that can be counted upon to stir emotion and controversy into any conversation or argument. The very concept provokes a profusion of valid questions and opinions. Today's daily world of crime and violence calls for punishment of a severe nature, and many citizens argue that the punishment necessary is the death penalty. These people quote passages such as the "an eye for an eye, tooth for a tooth" concept from the Old Testament of the Judeo-Christian bible. Some people take the neutral position that there is no right or wrong answer, that each opinion on capital punishment is valid in its own way. Opponents of the death penalty claim that sentencing a person to death does not change the reality of the situation; the harm already done simply cannot be fixed from a vengeance standpoint. You cannot bring the murdered person back by taking the prisoner's life. Proponents of capital punishment tend to defend their opinion mainly on two grounds: death is a fitting punishment for murder, and executions maximize public safety through incapacitation and deterrence. The view of proponents of the death penalty in reference to the "let the punishment fit the crime" ideal is that, in the eyes of many law officials and citizens of the United States, if a crime is so serious that it causes irreversible damage or the loss of human life, then the only penalty for such crimes would be death for the individual that committed this act. Many also feel that if an individual can possess the strength and will to take the life of another human being in a planned manner, then they must also in turn be able to face their punishment which could only be a punishment of the same magnitude as the crime they have committed; that being for their life to be ended for the common good. These people feel that, while it is the cruelest pu... ...ng the Revolutionary War, once said, "I shall ask for the abolition of the punishment of death until I have the infallibility of human judgment demonstrated to me." Some radical death penalty opposers even go so far as to claim that those who support such punishment with the excuse of "an eye for an eye, a tooth for a tooth" are like immature children who continue to insist on the principle of childish payback and petty revenge. They sy that these people did not listen to their mothers when they were told "two wrongs do not make a right." They say these men and women have not grown out of a tendency toward violence and a shunning of the virtues of mercy and forgiveness, in addition to morality. Opposing the death penalty does not mean sympathy with convicted murderers. On the contrary, murder and manslaughter both demonstrate a lack of respect for life. For this very reason, a policy of state-authorized killings is immoral. Criminals no doubt need to be punished, but severity of punishment should have its limits, beginning with the use of human dignity. Governments that respect these limits do not use premeditated and violent homicide as an instrument of keeping the peace.

Share Capital

? SHARE CAPITAL Share capital is the Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash, the amount of share capital will increase. Share capital can be composed of both common and preferred shares. Each share carrying a vote in the management of the business, managerial control may be limited. The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.Issued Capital is the value of the shares issued to shareholders. This means the nominal value of the shares rather than their actual worth. The amount of issued capital cannot exceed the mount of the authorized capital. Types of Share Capital:- Redeemable Shares Ownership shares that the issuing business may repurchase. Some redeemable shares are mandatorily redeemabl e and must be repurchased by the issuer on a particular date or on the occurrence of a specified event, such as the death of an owner. Preference SharesPreference shares differ from ordinary shares in giving the holder preferential rights to receive a share of annual profits. An ordinary dividend cannot be paid unless all preference dividends due have been paid in full. Preference shares are also higher in the creditor hierarchy than ordinary shares, and have a preferential right to receive the proceeds of disposal of the assets in the event of a company going into liquidation. They are therefore less risky than ordinary shares, even though they are legally share capital as well. There are three further types of preference shares:-Participating preference shares Preference shares which, in addition to paying a specified dividend, entitle preference shareholders to participate in receiving an additional dividend if ordinary shareholders are paid a dividend above a stated amount. Conv ertible preference shares A preference share that can be converted into common shares at aset conversion price. A company may issue them to finance a major acquisitions without increasing the company’s gearing or diluting the EPS of the ordinary shares. Redeemable preference sharesA preference share which must be bought back by the company at an agreed date and for an agreed price Deferred Shares A share that does not have any rights to the assets of a company undergoing bankruptcy until all common and preferred shareholders are paid. Where it exits, it will rank behind all other shares for dividend. Non-voting Shares A share which equity that does not have a vote, even though it is entitled to a share of the profits. The term is not usually applied to preference shares, although preference share do not have votes, they receive a fixed dividend.Retained profit:- Retained profit is the profit kept in the company rather than paid out to shareholders as a dividend. Retained prof it is widely regarded as the most important long-term source of finance for a business. Dividend payable:- The amount of dividends which have been declared by a company’s board of directors and which are obligated to be paid to shareholders. If the dividend yield falls, then the share becomes less attractive compared to other investments, demand for it will fall, and supply will increase as investors wish to sell. Newspaper information on share:-Many of the broadsheet papers include a section showing security prices and related information including: the highest and lowest prices during the year; the closing price the previous day; the change in price over the previous trading day; dividends net of tax; dividend cover; gross yield; and the P/E ratio. Share categories:- Shares are categorized according to the company type and trading frequency: ? Alphas These are the shares of the most prestigious companies which are generally heavily traded and dealt in by a large number of m arket-makers. Prices are posted immediately on SEAQ ? BetasThese are also large company securities, but they are not as heavily traded as alphas. They must have at least four market-makers dealing in them and prices quoted on SEAQ are those at which firm deals can be made. ?Gamma These securities are traded lessfrequently than betas and the prices quoted for them are merely indicative. ?Deltas These are the least traded of all and no prices are actually shown, simply indications of a dealer's interest. Penny shares:- Penny shares are shares which have a very low value with the bid or offer spread of such shares exceeding 10% of their market value.Investors buy such shares in the hope that the market has undervalued their prospects and that they will make a substantial profit when the price recovers. Methods of issuing shares:- One way in which a firm can expand is to issue additional equity –usually on the main Stock Exchange or second-tier market, either by a quoted company issuing additional shares or by an unquoted company obtaining a quotation. An unquoted company may also wish to issue shares without being floated. Placing or Selective Marketing’s:-This method is often used for a company wishing to be floated for the first time and to issue a small issue, or by a quoted company wishing to raise additional finance. It involves securities' acquisition by a market-maker so that they can be purchased by a small number of investors. Offer For sale. This is where the company which is issuing the shares will offer the shares to an issuing house. Generally a merchant bank will act as an issuing house. The shares bought over by the issuing house will be re issued to the general public.Under this method the company which is issuing the shares can make use of the financial strength and the image of the issuing house to make. Normally the shares are offered at a fixed price determined by the company’s directors and their financial advisers. This is usually undertaken by the organization who is offering for the first time and a large issue. This is also known as public offer. The issue price should be low enough to be attractive to potential investors, but high enough to allow the required finance to be raised without the issue of more shares than necessary. PlacingThis is where the company which is carrying out the share issue will select large institutional investors and offer the shares by conducting â€Å"road shows†. A road show is where the company will conduct a presentation to educate the selected investors about the share issue. This will be a low cost method of issuing the shares. Some of the institutional investors who will be interested in the share issue will include pension funds, unit trusts, venture capital organizations, building societies. The shares are issued at a fixed price to a number of institutional investors who are approached by the broker before the issue takes place.Instead of engaging in advertising to the population at large, the sponsor or broker handling the issue sells the shares to its own private clients. The costs of this method are considerably lower than those of an offer for sale. There are lower publicity costs and legal costs. A drawback of this method is that the spread of shareholders isgoing to be more limited. Sale by tender This is where the company which is issuing the shares will call upon the investors to bid the price at which they are willing to buy the shares.Therefore each individual investor will indicate the quantity of shares they expect to buy and price they are willing to pay. The company should decide upon a price at which all the shares can be issued and collect the highest possible revenue. This price will be called the strike price. Investors who bid a price above this will be allocated shares at the strike price – not at the price of their bid. Those who bid below the strike price will not receive any shares. This method is u seful in situations where it is very ifficult to value a company, for instance, where there is no comparable company already listed or where the level of demand may be difficult to assess. It is more costly to administer and many investors will be put off by being handed the onerous task of estimating the share’s value. Short Term Finance:- Securitization:- The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors. The process can encompass any type of financial asset and promotes liquidity in the marketplaceRight issue The term right issue is applied to the system of issuing shares to existing shareholders usually at a discount from the market price in order to raise further capital from existing shareholders. The offer must be on a right basis in proportion to the members existing holding as a fraction of holdings of all members eligible to receive the offer. The rights of shareholders to buy the rights are known as pre-emptive rights. Calculation of issue price. This is the amount that company wishes to raise from the issue divided by the number of new shares.It is important to issue a sufficient number of shares so that the issue price is below current market price. Calculation of price after issue: ?Ex right price ?Actual price after issue †¢At current earnings †¢At lower earnings †¢At higher earnings Values of rights: The value is the difference between the price of the right shares and the ex-right shares. Other methods: ?Subscription offers: An offer for subscription is an invitation to the public by or on the behalf of an issuer to subscribe for securities not yet issued or allotted. ?Prospectus issue:If reasonably substantial the company might make an issue direct to the public with the absolute minimum of assistance from the outside source. It is rather unusual because of the complexity of the nature of the capital issue. ?Stock exchange introduction This is the introduction of the shares on the stock exchange so that a quotation can be fixed, rather than the issue of shares. ?Role of underwriters Under writers agree to purchase any securities not taken up at the issue price and will charge a fixed face for their service. Use of underwriters removes the risk of share issue being under subscribed. Open offers: This is an offer to existing shareholders to subscribe for securities. Whether or not pro rata to their existing shareholders. They are not allotted through the issue of renounceable documents. ?Vendor share scheme or placing: Where a vendor prefers cash to shares issued to finance an acquisition by a purchaser, an issuing house can place the securities with clients for cash. ?Exchanges and conversions: This is the process used to replace one security with another. E. g. ; a vendor consideration issue or paper issue used in a merger or takeover bid. Employee share schemes: Such e mployees are often used as incentives, e. g. ; share option schemes which give certain employees the chance to purchase shares in the company at a price determined in advance hopefully for a financial benefit. The firm should consider the following factors when pricing shares for a stock market quotation: †¢The current and future market conditions and the firm’s results. †¢P/E of similar quoted companies. †¢Whether the quotation is to be on the main market or the AIM. †¢An initial premium on launch, followed by steady growth in the share price is desirable. The amount of finance required. †¢Future dividends and earnings forecasts (the more shares the more dividends need to be paid out). †¢Underwriting costs or deep discount required to avoid under subscription of shares. Costs of share issues: The costs involved in share issues include †¢The stock exchange listing fee for the new securities. †¢Fees of advisors including those of the iss uing house. †¢Underwriting costs. †¢The compulsory advertising in national newspapers. †¢Printing and distribution costs of details and prospectus. Issuing new shares without raising capital: Scrip issues/ capitalization / bonus issue: It involves conversion of reserves into capital causing a fall in the reserves. Shareholders receive additional shares in proportion to their holding. The shareholders do not pay for the shares. This results in more equity in circulation with the result that the market value will generally fall in the short term. This making it more attractive to potential investors. ?Scrip dividends: It is a conversional of profit reserves into issued share capital offered to shareholders in lieu of cash dividend.Enhanced scrip dividends are those where the value of shares is greater than cash dividend offered as an alternative. ?Stock split; It is the splitting of existing shares into smaller shares, in order to improve the marketability of the compan y’s shares. Share repurchase: Repurchases or buy-ins of shares may be made by companies out of their distributable profits or out of the proceeds of a new issue of share made especially for the purpose; provided than are authorized to do so in the company’s articles of association.And off- market purchase is said to occur when the shares are purchased not subjected to the marketing arrangements of the stock exchange or other than on a recognized stock exchange. Advantages: †¢It may allow a company to prevent a takeover bid. The control by the existing shareholder group will be increased. †¢A quoted company may purchase its share in order to withdraw from the stock market. †¢It can be a useful way of using surplus cash. †¢Repurchasing shares will reduce the number in circulation which should allow an increase in earnings and dividends per share and should lead to a higher share price.It will increase future EPS as future profits will be earned by few er shares. †¢Reducing the level of equity will increase the gearing level for a company with debt which may be considered beneficial by the company. †¢If a business is in decline a share repurchase may give the firm’s equity a more appropriate level. Disadvantages: †¢Repurchasing of shares may be viewed as a failure by the company to manage the funds profitably for shareholders. †¢The company requires cash for the repurchase. †¢It may be difficult to fix a price which is beneficial to all involved. It requires existing shareholders approval. †¢Capital gains tax may be payable by those shareholders from whom the shares are purchased. †¢It increases gearing. Debt and other forms of loan capital: Debt capital is borrowing fund from others or public with issuing securities, bond, it is cheaper than cost of equity this is largely use from the high cost of equity. Debentures A debenture is a document that either creates a debt or acknowledges it, and it is a debt without collateral. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money.In some countries the term is used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company’s capital structure, it does not become share capital Features of debentures ?Debenture holders are not the owners of the company. They are considered the creditors of the corporation or in other words, the company borrows money from them through issuing debenture. No voting rights. The debenture-holder is not a shareholder and cannot vote in the company's general meetings. ?Fixed rate of interest. A debenture with a fixed charge has a fixed rate of interest. It can be presented as â€Å"10% Debenture†. They a re always unsecured and earns a fixed rate of interest but has no share of the profit. ?Compulsory payment of interest. The interest on debenture is payable irrespective of whether there are profits made or not. Mortgage A mortgage represents a loan or lien on a property house that has to be paid over a specified period of time.Think of it as your personal guarantee that you'll repay the money you've borrowed to buy your home. Mortgages come in many different shapes and sizes, each with its own advantages and disadvantages. Make sure you select the mortgage that is right for you, your future plans, and your financial picture Convertible loan stock A loan to a company in the form of bonds that can later be exchanged for shares under certain conditions. Investor Advantages In a convertible debt agreement, investors are viewed as creditors of the start-up business. This is advantageous if the company liquidates or goes bankrupt.Note holders are shown preferential treatment when the com pany's assets are divided. As the note is secured against the borrower's assets, an investor may feel more secure lending using convertible debt than he would through a traditional bank loan. Disadvantages for Borrower In the event that the convertible promissory comes due and it is not converted to equity or stock, the note still remains payable when the lender calls it in. The note is taken out against the company's assets, and the lender has the right to liquidate the assets to get his money.This can put a company in dire financial straits Warrants †¢Warrants give the holder the right to subscribe for a specified number of shares at a fixed price during as at the end of a specified time period. †¢Warrants are rights given to investors allowing them to buy new shares in a company at a future date at a fixed given price. †¢The price is known as exercise price. †¢The time at which they can be used to obtain shares is known as exercise period. †¢The warrant c onversion premium is calculated by comparing the cost of purchasing a share using the warrant and the current share price. BondsThe long term contract in which the bondholders lend money to a company. In return the company promises to pay the bond owners a series of interest payments known as coupons until the bond matures. At maturity the bondholder receives a specified principal sum called the par value of the bond. The increase or decrease in the market prices of a bond doesn’t affect the return. The investor only gets back the nominal value of the bond. Licensing and franchising This allow for the acquisition of a product, service or business concept of another organization, without the purchase of the other entity as a whole.In this an initial payment is required by the provider and also the royalties on subsequent sales, in return for marketing in an exclusive territory. Syndicated loans For large loans a single bank may not be able or willing to lend the whole amount. So they spread their lending to gain the risk reducing benefits of diversification. They prefer to participate in a number of syndicated loans in which a few banks each contribute a portion of the overall loan. It generally offers lower returns than bonds. And they are paid out before bond holders in the event of liquidation.Mezzanine finance Offering a high return with a high risk. The finance it provides is cheaper (in terms of required return) than would be available on the equity market and it allows the owners of a business to raise large sum of money without sacrificing control. It is used when the limits of bank borrowing has been reached and the business cannot or is not willing to issue any more equity capital. Medium term notes The company promises to pay the holders a certain sum on the maturity date, and in many cases a coupon interest in the period of time. And it may be unsecured.The interest rates may be fixed, floating or zero rate. Project finance Deal is mainly cre ated by industry corporations providing some equity for those who build and operate a project. The significant feature is that the loan returns are tied to the cash flows and fortunes of a particular project rather than being secured against the parent firms assets. For project finance, while the parent company s credit standing is a factor. The main focus is on the financial prospects of the project itself. And it is used to finance power plants, roads, ports, sewage facilities, telecommunications etc. nd the main advantage is that the finance is raised on the projects assets and cash flows and therefore is not recorded as debt in the parent company s balance sheet. Sale and leaseback If a firm owns buildings, land or equipment it may be possible to sell these to another firm and agree to lease the property back for a stated period under specific terms. Hire purchase The finance house allows the hirer firm to use the equipment in return for a series of regular payments. These payme nts are sufficient to cover interest and contribute to paying off the principal.After all payments have been made then the hirer becomes the owner. The main advantage for the customer is that interest part of the payments are allowable against tax, and capital allowances can be claimed on the asset. Leasing It’s similar to hire purchase. Here also the owner converts the right to use the equipment in return for regular rental payments by the user over an agreed period of time. Here the difference is that the lessee never becomes the owner. Operating lease Commit the lessee to only a short term contract. And don’t have to be reported on the face of the statement of financial position.They will not be included in gearing calculations. And liability of future rentals is reported as a note to the accounts. This is mainly useful for lessee in the case of high technology products which are quickly obsolete. Finance lease It is also called capital lease or full payment lease. The finance provider expects to recover the full cost of the equipment plus interest over the period of the lease. And the lessee has no right to cancellation. The lessee will have to bear the risks and rewards that normally go with ownership. And he will usually be responsible for maintenance, insurance and repairs.It is reported on the face of the statement of financial position. Short Term Finance Securitization: The process whereby companies, instead of raising finance by borrowing from financial institutions, Converts assets into securities for sale in the marketplace. This may be allowed in the lower interest rates. Note Issuance Facilities (NIFs) and Revolving Underwriting Facilities (RUFs):- The NIF acts as an underwriter. Should the borrower be unable to sell all notes, the syndicate is obligated to purchase all the remaining notes from the borrower, essentially providing credit.Note issuance facilities are useful in reducing risk and costs for both the borrower and the len der. A RUF differs from a note issuance facility (NIF) in that the underwriters provide loans instead of purchasing the outstanding notes that failed to sell. In either case, both RUF and NIF provide short- to medium-term credit in the Eurocurrency market. Commercial Paper :-(CP) An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates. One example is where the company issues six month dollar notes in the European Commercial Paper Market (ECP). Medium-term notes (MTN) Range in maturity from one to 10 years. By knowing that a note is medium term, investors have an idea of what its maturity will be when they compare its price to that of other fixed-income securities.All else being equal, the coupon rate on medium-term notes w ill be higher than those achieved on short-term notes. The use of CPs and MTNs is limited in that a minimum size of company and issue restricts it to large companies, multinationals and certain public sector bodies, and they are driven by the demand of investors. Syndicated Credits:- The main goal of syndicated lending is to spread the risk of a borrower default across multiple lenders (such as banks) or institutional investors like pension’s funds and hedge funds.Because syndicated loans tend to be much larger than standard bank loans, the risk of even one borrower defaulting could cripple a single lender. Syndicated loans are also used in the leveraged buyout community to fund large corporate takeovers with primarily debt funding. Banks:- Bank lending to companies is predominantly short term, although it is also now a valuable source of medium term finance. a)Bank loans:- A short-term loan is a fixed amount of debt finance borrowed by a company from a bank, with repayment t o be made in the near future, for example after one year.The company pays interest on the loan at either a fixed or a floating rate at regular intervals, for example quarterly. A short-term bank loan is less flexible than an overdraft, since the full amount of the loan must be borrowed over the loan period and the company takes on the commitment to pay interest on this amount, whereas with an overdraft interest is only paid on the amount borrowed, not on the agreed overdraft limit. The interest rate for small companies on medium-term loans may either be at a fixed rate or at a margin above the bank's base rate.For larger companies, the interest rate on medium-term loans may again be fixed for up to five years, but is usually at a margin above the London Inter-Bank Offered Rate (LIBOR) adjusted every three, six, nine or twelve months in line with LIBOR movements. b)Overdraft:- An overdraft is an agreement by a bank to allow a company to borrow up to a certain limit without the need f or further discussion. The company will borrow as much or as little as it needs up to the overdraft limit and the bank will charge daily interest at a variable rate on the debt outstanding.The bank may also require security or collaterals protection against the risk of non-payment by the company. An overdraft is a flexible source of finance in that a company only uses it when the need arises. However, an overdraft is technically repayable on demand, even though a bank is likely in practice to give warning of its intention to withdraw agreed overdraft facilities. Overdrafts are often the ideal solution for short term borrowing and are extensively used to overcome short term cash flow problems, such as for funding purchase of raw materials whilst waiting payment on goods produced.There is no penalty for repayment of an overdraft, unlike (usually) the early repayment of a medium-term loan. The bank, though, can demand the repayment of an overdraft atany time, and many businesses have b een forced to cease trading because of the withdrawal of overdraft facilities by their bank. The advantages of an overdraft facility with the bank are that: †¢It provides flexibility. †¢It is a relatively cheap from of finance. †¢Interest is charged on the daily balance. The major drawback of an overdraft is that the bank can withdraw the overdraft facility at short notice.Trade Credit:- Trade credit is an agreement to take payment for goods and services at a later date than that on which the goods and services are supplied to the consuming company. It is common to find one, two or even three months’ credit being offered on commercial transactions and trade credit is a major source of short-term finance for most companies. The advantages of trade credit is that it is a relatively convenient, cheap and informal way of securing short term finance and is available to companies of all sizes. Factoring:-A financing method in which a business owner sells accounts rec eivable at a discount to a third-party funding source to raise capital. Factoring is the cash-management tool of choice for many companies. It is one of the most expensive forms of financing. The way it works is as follows: †¢Once a sale is made, the company invoices its customer and sends a copy of the invoice to the factor. †¢The factor then pays the company a set proportion of the invoice value within a pre-arranged time –typically, most factors offer 80-85% of an invoice's value within 24 hours. †¢The factor issues statements on the company's behalf and collects the payments.However, the company remains responsible for reimbursing the factor for bad debts, unless a â€Å"non-recourse† facility has been arranged. †¢The company will receive the balance of the invoice (less charges) once the factor receives payment. †¢The factor provides regular reports on the status of the company's sales ledger Typical charges on the amount financed range fr om 1% to 4% over base rate, with interest calculated on a daily basis. Credit management and administration charges, including the maintenance of the sales ledger, depend on turnover, the volume and number of invoices. Typical fees range from 0. 0% to 3. 0% of annual turnover –a company with 50 live customers, 1,000 invoices per year and ? 1 million turnover might pay 1%. Advantage:- †¢Cash flow is maximized as factoring enables a company to raise up to 80% or more on outstanding invoices †¢Using a factor can reduce the time and money spent on debt collection since the factor will usually run the sales ledger for the company †¢The factor's own credit control system can be used to help assess the creditworthiness of new and existing customers †¢Factoring can be an efficient way to minimize the cost and risk of doing business overseas Disadvantage:- The factor usually takes over the maintenance of the sales ledger, and customers may prefer to deal with the c ompany it is trading with rather than a factor †¢Factoring may impose constraints on the way business is conducted –for example, the factor will apply credit limits to individual customers and for non-recourse factoring, most factors will want to pre-approve customers, which may cause delays †¢The client company might only want the finance arrangements and yet it might feel it is paying for collection services they do not really need †¢Ending a factoring arrangement can be difficult where the only exit route is to repurchase the sales ledger or to switch factors and that could cause a sudden shortfall in working capital. Invoice Discounting:- A method to draw loans from a company’s outstanding invoices that does not require the company to relinquish administrative control of the invoices. An invoice discounting company will review the outstanding invoices on the company's ledger, and will determine the amount of loans that it will extend. Because the mon ey is loaned, the company will be responsible for interest payments, as well as a fee to the invoice discounting company. The requirements are more stringent than for factoring and different invoice discounters will impose different requirements. ‘Confidential invoice discounting† ensures that customers do not know a company is using invoice discounting as the client company sends out invoices and statements as usual. However, the costs of this are greater since the discounter is carrying a greater degree of risk. Bills of Exchange:- Bills of exchange are similar to checks and promissory notes. They can be drawn by individuals or banks and are generally transferable by endorsements. The difference between a promissory note and a bill of exchange is that this product is transferable and can bind one party to pay a third party that was not involved in its creation. If these bills are issued by a bank, they can be referred to as bank drafts. If they are issued by individual s, they can be referred to as trade drafts. International capital marketsThere is an increasing internationalization of capital markets, especially for the larger companies. Eurocurrency:- Currency deposited by national governments or corporations in banks outside their home market. This applies to any currency and to banks in any country. For example, South Korean won deposited at a bank in South Africa, is considered Eurocurrency. The market generally offers high rates of interest, flexibility of maturities and a wide range of investment qualities in comparison with other capital markets. The unique feature is that the transactions in each currency take place outside the country from which that currency originates.On the short-term, inter-bank Eurocurrency market, transactions may take place between banks on an unsecured basis from overnight to five years' duration. Most transactions are for six months or less and transaction of over ? 1m is common. Eurobonds:- The Eurobond market is an international capital market which has developed alongside the Eurodollar market since the 1960s. Usually, a Eurobond is issued by an international syndicate and categorized according to the currency in which it is denominated. A Eurodollar bond that is denominated in U. S. dollars and issued in Japan by an Australian company would be an example of a Eurobond. The Australian company in this example could issue the Eurodollar bond in any country other than the U. S. A bond issued in a currency other than the currency of the country or market in which it is issued. ) The following advantages are claimed for the Euromarkets in various currencies: †¢Extremely large sums can be raised or deposited. †¢Money will often be cheaper than the domestic markets. †¢Controls tend to be less restrictive. †¢Some protection against exchange rate movements is offered, but here the user will require a high level of skill in selecting his or her alternatives. †¢ Any perio d of surplus or shortage from one day to five years can be accommodated. †¢The markets offer a useful alternative to other sources of capital which the company Eurobonds Available:- †¢Straight fixed rate bondsThe majority of Eurobonds with a fixed coupon can be described thus. Interest is generally paid out once each year and is calculated using a 360-day year. Some older issues do pay half-annually. †¢Equity related bonds These may take two forms: Convertibles–whereby the bond holder has the right (but not the obligation) to Convert the bond into ordinary shares at a pre-determined price. Eurobonds with warrants–which are similar to convertible bonds in that warrants are attached to the Eurobond enabling the holder to purchase ordinary shares represented by the warrants at, or between, specified dates. The exercise price will be set in a similar fashion to that of convertible Eurobonds. †¢Floating rate notes (FRNs)A note with a variable interest ra te. The adjustments to the interest rate are usually made every six months and are tied to a certain money-market index. Also known as a â€Å"floater†. Borrowing in the Euromarkets;- Borrowers in the Euromarkets include: †¢Companies needing dollars for investment in the USA. †¢Unit trusts and investment trusts investing in foreign securities. †¢The United States banks, which find that it is expedient to take up loans through the European market rather than to borrow in the USA. †¢Multinational companies wishing to invest in a particular country without wishing, or being able, to transfer capital from their base country. National governments and bodies associated with national and international agencies. Euro equity:- An Initial Public Offer occurring simultaneously in two different countries. The company’s shares are listed in various countries rather than where the company is based. Choice of Currency for Borrowing The factors affecting the choice of currency used for company borrowing include: †¢The ease and speed of raising finance, which is often easier outside the domestic markets. †¢The size of the debt –larger loans tend to be borrowed in the Euromarkets. †¢The cost of issues –small changes in interest rates can have a significant impact if the loan is large. Whether the currency is required immediately (including coverage in preventing exchange exposure) and in the long run. †¢The security the company has available –Euro borrowings are generally unsecured. Advantages of Raising Funds in International Markets:- There are several advantages to the company in raising funds in international markets, including: †¢It is useful if the company's own capital market is too small, or too complex and/or regulated to raise the required finance quickly and easily. †¢It improves the liquidity and reputation of the company. †¢It may improve trade if the company trades in the cou ntry of the currency/capital market. †¢It can help in preventing takeover bids.

Insecurity in Nigeria

INSECURITY IN NIGERIA This essay is written to give information on the causes and solution to the insecurity in Nigeria. From this, we see that it is expressly stated in our Constitution that the Government(s) is ultimately responsible for the security of lives, property, etc of the people of Nigeria. Internal security, or IS, is the act of keeping peace within the  borders  of a  sovereign state  or other  self-governing territories. This is done generally by upholding the national  law  and defending against internal security threats.Responsibility for internal security may range from  police  to  paramilitary  forces, and in exceptional circumstances, the  military  itself. (Wikipedia) Threats to Internal security Threats to the general peace may range from low-level  civil disorder, large scale  violence, or even an armed  insurgency. Threats to internal security may be directed at either the state's citizens, or the organs and infrastructure of  the state  itself, and may range from petty  crime, serious  organized crime, political or industrial unrest, or even domestic  terrorism.Foreign powers may also act as a threat to internal security, by either committing or sponsoring terrorism or  rebellion, without actually  declaring war. Forces and Agencies Governmental responsibility for internal security will generally rest with an  interior ministry, as opposed to a  defense ministry. Depending on the state, a state's internal security will be maintained by either the ordinary  police or law enforcement  agencies or more militarized police forces (known as  Gendarmerie).Other specialized internal security agencies may exist to augment these main forces, such as  border guards,  special police units, or aspects of the state's  List of intelligence agencies. In some states, internal security may be the primary responsibility of a  secret police force. The level of authorized force used by agencies and forces responsible for maintaining internal security might range from unarmed  police  to fully armed  paramilitary  organizations, or employ some level of  less-lethal weaponry  in between.For violent situations, internal security forces may contain some element of military type equipment such as  non-military armored vehicles. But enough of definitions and insinuations. What we are talking about is not merely petty crimes, armed robberies, etc, but terrorism and bombings, armed insurgency, e. g. the Niger Delta problem, which seemed to have died down a bit of recent, after all the hullabaloo of Amnesty, Jos ethnic/religious killings, Boko Haram massacres and bombings in Abuja, Maiduguri and other northern cities, etc.What every Nigerian should be doing is asking and demanding answers on what has been done so far since October 1st, 2010 Independence Day Twin Bombing in Abuja FCT. Not to mention numerous bombings in Maiduguri, Bauchi and Adamawa. Mind you, these a re not the first instances of such insecurity. Insecurity has been with us probably since we became a Republic, only we decided to turn blind eyes to it. When the CIA report of 2005 predicted the collapse of Nigeria in about 15 years time, patriots and critics alike reacted differently to the report.For me, as much as I wanted to dismiss it, something kept niggling my mind that this might be a true prophetic scrutiny of the state of Nigeria. Not because the CIA is dependable in its security analysis, after all, they didn't get it right to prevent 9/11 2001 from happening, but events in Nigeria seemed to suggest that while other countries in the sub-region were developing, Nigeria was retrogressing despite its claim to democracy.People expected the then Government of Obasanjo to take this warning as a chance for Nigeria to look inwards, engage with the report, and work on those predictive indices that could lead to the predicted failure. But, inopportunely, the Obasanjo government di smissed the report in its totality. In a way, the dismissal is not entirely a surprise, since our leaders, over the years, are prone to such habits of shielding the truth from their people, not caring as long as it does not happen in their time; are actually very ignorant of what is going on around them, and are obstinate and tyrannical in their nature.The current general state of insecurity in Nigeria has now lent weight to the report. It must be recalled that while the report was released at the advent of the so-called Niger Delta crisis, since then several acts of bombings and killings by the extremist Islamic sect, Boko Haram, the carnage between ethnic Birom and the Hausa/Fulani in Jos, and the political violence that followed immediately after the 2011 Elections results, mostly in the northern part of the country, have further cemented the insecure state of the country.Starting with the usual religious/ethnic oriented conflicts, to the Jos ethnic/religious/political conflict o f 2008, regrettably, the northern states have shown that security of persons and properties is still far from being realizable. However, the current crisis which started in Bauchi and has engulfed other states in the north has elements of theocratic opinionated ambitions in it. While the fundamentalist group – Boko Haram's – demand for the jettisoning of a western behavioral pattern and the imposition of strict Sharia law can be described as absurd to say the least, we should equally view it with all the seriousness it deserves.What the current trend of violence is imprinting on the psyche of Nigerians is that the government security apparatus is incapable of guaranteeing the safety and security of its people. This would, therefore, impact on the general human security of the people as the situation promotes fear, while at the same time limiting the peoples' ability to develop economically. At the same time, the state's capacity to attract investors becomes limited as a result of the insecurity.For instance, states like Enugu and Bauchi that have huge tourism potential would be losing out on this front On different terrorist attacks, listen to what leaders with political will had to say: On 9/11: â€Å"This is an act of war against the United States. We'll hunt down the terrorists. They can run but they can't' hide†¦ † – George Bush London Bombing: â€Å"We'll track down the terrorists and bring them to justice† – Tony Blair UN House Bombing: â€Å"Terrorism is a global phenomenon. May be it is Nigeria's turn. † – Goodluck Jonathan So what our supreme leader is saying is that, â€Å"why not, it’s our turn to start getting blown up†.How much more should we expect? That shows you the depth of intelligence and care of our leaders. Security was a driving issue in the last Presidential campaign following bomb blast by Niger Delta militants and attacks of police by members of the extremist Is lamic group, Boko Haram in the northern part of the country. President Jonathan campaigned very hard to convince Nigerians that his government was meeting those security challenges. But the rioting, mostly in the North, that followed immediately after his election raised questions, which are still unanswered, about security preparedness.At least 800 people were said to have been killed in these Muslim-Christian electoral violence. â€Å"As president, it is my solemn duty to defend the constitution of this country. That includes the obligation to protect the lives and properties of every Nigerian wherever they choose to live,† he said Challenges ; Proposed Solutions: Mr. President should acknowledge the failure of the security agencies hence there should be a complete overhaul of the Security Agencies in the county to pre-empt these security breaches. In particular, the failure of the intelligence services to contain the recurring security breaches.The spate of bombings has on ce more brought to limelight the need for a Sovereign National Conference. Until these structural distortions and anomalies are addressed, the monster of insecurity will loom large and Nigeria will once more be listed as a terrorist nation. Mr. President has to act decisively to execute his Office, and this can be achieved by implementing the anti-terrorism law and punish culprits of such heinous crimes capable of causing instability in the nation. This will vitiate the implementation of Mr. President's transformational agenda.The long-term effect is that the on-going terrorism will discourage potential investors in Nigeria. At the speed Nigeria is deteriorating, there is a strong desire for a  SOVEREIGN NATIONAL CONFERENCE  so that all ethnic  nationalities  can make their stand known  this amalgamated country. The way forward is for us to keep laying emphasis on the need for the evolution of six regions. The federation should stay but let every region grow at its own pac e. The Western region has clearly set the  pace going by the result of the  last election.All the Western states voted massively for the Action Congress party (ACN), a party that  is not sufficiently  different  in programmes from the Action Party of Chief Obafemi Awolowo. Each region should have their own police Force. MOPOL and Interpol  could be transformed into the only Federal Police crack elite team. The rest members of the police force should be dismembered and directed to return to their regions. It is  the duty of the regions to now retrain, equip and pay them. Second, the judiciary is not helping matters at all. This institution  is heavily  compounding our problems.It has got to really sit up. Cases of corruption are not  meant to be compromised at all, let alone adjourning them endlessly. The judiciary ought to have, at this stage in our development, evolved time scales  for cases. There  ought to have been  a time to determine a case; time to c lose that case; and time to deliver  judgment and pass sentences. In Nigeria, cases that bother on corruption and insecurity have most often been compromised thus the law is no longer acting as a deterrent. What is happening in Jos is too gory to narrate.The endless killing going on in that city has made the demand for regional governmentt more pertinent. The country cannot just continue to toe the line of extinction. Most Nigerians  do not value human lives. They debase them. Most  have become conditioned to act of carnages, brigandage, looting, massacre,  butchery and bestiality. Thirdly, the Federal government should always be decisive on issues that bother on insecurity. We have never had strong leaders. From Shagari to Yar ‘Adua and now to Jonathan, what we have heard were leaders handpicked and imposed on the people.We have over the years been denied leaders that would bring us out of the woods. First were Awo in 1979 and, controversially, Abiola in 1993. We have never had it so bad. OBJ was an imposition by the Northern oligarchy. Corruption was commonplace under OBJ. Now under Jonathan, what we have is intertwined corruption and insecurity. Ethnic and the foregoing problems and criminal activities individually and collectively create insecurity and breach of the peace that are likely to or indeed affect legitimate social and economic activities in the country.These problems also have the very damaging consequence of giving the signal to the rest of the international community that Nigeria is not a safe and secure place and as such not suitable for economic investment and activities. This is particularly important in view of the efforts being made to create the desired atmosphere to attract foreign investment. Beyond the effects of security concerns on the economic fortunes of the country, the nature of the security challenges facing the country also have implications for the country's political system.As mentioned earlier, social cohesion among various groups and interests is important in the process of national political development. Therefore, the constituent parts of the country must be and indeed feel that they are being carried along in the process of national governance. Experience has shown that widespread discontent and loss of confidence in the system have ways of affecting national political stability. Invariably continuing escalation of violence and crises across the country will impinge on the survival of our democracy.Accordingly, there is the challenge to rethink and improve on policy and institutional means of dealing with security concerns arising in the country. At the political level, the federal, state and local governments should evolve programmes of cultural and political education and orientation that seek to enthrone the fundamentals of democracy so that the political contestants as well as the generality of the citizens imbibe principles and practices essential for sustainable democracy.Such programmes must also address specific tendencies that create security breach and concerns in the country. In addition, a process of legislative and constitutional review should be initiated to assess the country's constitution and amend or expunge as necessary areas that have been found to give rise to conflicts and security problems. The process should also introduce new provisions and legislations that will ensure better and more effective interplay of interests among all groups and stakeholders in Nigeria.Such exercise should also embrace ways of making the country's democratic space more open, free, fair and tolerant as exists in other democracies around the world. Among specific lingering political issues that should be addressed are: the laws relating to political parties and their activities; the establishment, funding and activities of the electoral body; local and state government relationship; allocation of national resources and revenue; citizenship rights; devolution of security powers to states and local governments.In addition, the legislative and constitutional review should also embody security sector reforms that will make the security agencies and institutions more effective in combating crimes and other threats to national security and make them accountable to the democratic political system and structures. These democratic structures include the states and local governments. I believe that we need to give a more concrete understanding to the definition of governors as the chief security officers of the state.In all, what we need is a good government, no more no less. And a good government is possible in as much as people who are put in positions of authority are allowed and are committed to discharge their duties without fear or favors; are determined to serve with zeal and patriotism; are not ready to sell out to international capital and are ready to stand by the truth and die for it.In all, there is no mono cultural theory that is a cure -all to the diverse nature of insecurity in Nigeria but I believed and stand by the theory that Nigeria should evolve into six regions, each region having its Premier or Governor, each region has a right to retain its states or to abolish- the choice is theirs in the region to make; each region should be in charge of its Education,  Security, Health, Agriculture, Housing, Transport and Energy policies.The Central Government should be in charge of the Army, Central Bank, Customs, Prisons and Immigration services, MOPOL and Interpol, ALL WORKING at the same time IN THE INTEREST OF THE COUNTRY. The objections to this Soveriegn National Conference are coming significantly from the core north unbeknownst to the people from that region that the fallout from that conference would sufficiently be in their favour. Pessimism is a social disease but in a society of rights, it is right! Insecurity in Nigeria INSECURITY IN NIGERIA Underlying the quest for national security in Nigeria is the issue of political morality, which focuses on the question of defining the relationship between the state and the various groups in the society. Political morality properly construed seeks to establish and sustain the essential conditions for the smooth functioning of the state and society. It is in this light that we identify the problem of the moral basis of Nigeria’s security to be a vital imperative of national reconciliation, national survival and national development in the new millennium.Our examination of the moral foundations of national security is all the more significant when we examine the trend of events in the history of military and economic growth in Nigeria, especially under the erstwhile military regimes of Abacha and Babangida. This essay is particularly concerned with showing the pattern of ethical degeneration that led to the systematic and institutionalised erosion of pers onal and collective peace, safety, stability and harmony within the Nigerian society.Also, the need for an examination of the ethical basis of human social existence in Nigeria is further highlighted by president Obasanjo (1999: 8) who 245National Security, Social Order†¦ in the October 1999 national day speech emphasized that there is a need to examine the moral foundations of all our actions and to continue to search for the conditions that will make Nigeria a just, free and wealthy society. Obasanjo’sstatement clearly implies that the country is yet to achieve the much desired level of ethical conduct and respect for human dignity that can ensure the maintenance of security, peace and order in the society.Indeed, the history of Nigeria shows that the practice of genuine moral conduct and the guarantee of adequate personal and national security for all segments of the society has been an illusive and futile project. An examination of the spectrum of national life revea ls the incidence of corruption in high and low places, conflicts and confusion in various communities and regions, greed and selfishness as the guiding principles of human social interaction, as well as a situation of pervasive lawlessness in the conduct of daily life .As aconfirmation of the problem of national security in Nigeria the Nigerian Bar Association [NBA] has stated that there is increasing national decay and insecurity, which is seen in the regressing economy, unviable hospital facilities and health services, lack of good pipe borne water, transportation and fuel problems that have overwhelmed the society (Nwankpa 2000: 8). We may also add that the problem of national security is seen in the increasing situation of lawlessness, violence and criminality that have become endemic in the nation.The evidence of the dismal state national security is seen in what Onyegbula (2000: 24) describes as the diminishing standard of living and the deteriorating social infrastructures an d educational system. For instance, the roads, refineries,hospitals and schools have not been functioning at their optimum levels. More so, the existence of a poorly trained police force, has compelled the abdication of the security of lives and property of Nigerians to the ethnic militia groups and other dubious civil defense and vigilante associations.Together, these civil and institutional security agencies and groups participate in the institutionalized brutalization, extortion and repression of the people. Thus, our argument is that the erosion of both the dignity of the human person and the sanctity of the social order, has ensured that the establishment of genuine national security in the nation has not been adequately guaranteed.More importantly, the earlier approaches, which have been adopted in the attempt to provide national security in Nigeria, have not been successful. Hence, there is a need to seek a new approach to the resolution of the problem of national security in Nigeria and a good point to start the discussion is to attempt a conceptual analysis of social order as a prelude to the examination of national security. Oham Ugochukwu This day Journalist OHAM UGOCHUKWU YEAR 10 ENGLISH LANGUAGE

Las generalidades de la gestión

Las generalidades de la gestià ³n Free Online Research Papers Las generalidades de la gestià ³n La mayorà ­a de las empresas que ingresan o trabajan en los mercados usualmente tienen que ajustar sus modelos de negocios, hacer una reingenierà ­a de sus productos o servicios, y explorar nuevas alternativas y caminos de distribucià ³n. No existe una solucià ³n universal. Algunos modelos de negocios ya han sido explorados y ofrecen buenas pautas para futuros enfoques y la inclusià ³n econà ³mica de las mayoristas. Estas nuevas alternativas, muchas veces son expandidas por personas con experiencia los cuales prefieren emprender una carrera en negocios personales antes de sacrificar su vida en una compaà ±Ãƒ ­a que nos les pertenece. El caso de Kathy Kudler quien fue la Vicepresidenta de Mercadotecnia, cansada de constantes viajes y presiones de la vida empresarial, desarrolla un plan de negocios en el que consiguià ³ financiamiento y abrià ³ su primera tienda Kudler Fine Foods (KFF) en La Jolla, San Diego. Estas decisiones y cambios radicales de personas con puestos envidiables en compaà ±Ãƒ ­as grandes y multinacionales, son unas que vemos todos los dà ­as. La mayorà ­a de estos ejecutivos son excelentes administradores y là ­deres en su rama, pero prefieren tomar ventaja de todas las tà ©cnicas y herramientas que aprendieron durante su carrera profesional e implantarlas en su propio negocio. Los là ­deres deben analizar primero la situacià ³n y descubrir los factores clave en las tareas, los empleados y la organizacià ³n, que indican cual estilo serà ­a à ³ptimo para esa combinacià ³n, (Davis Newstrom, 2003). Como parte de su plan estratà ©gico, Kathy se asegura que entiende las necesidades de sus clientes y se enfoca en sus diferenciadores del mercado al proveer productos de alta calidad en su moderna panaderà ­a estilo europeo. Adems ofrece tambià ©n carnes, pescados, mariscos y productos agrà ­colas en donde ofrece ms de 350 variedades de frutas, verduras, hierbas y especies frescas. KFF es una tienda de alimentos de especialidad dirigida a un estrato social alto y ubicado en el rea metropolitana de San Diego. La misià ³n de Kudler Fine Foods es ofrecer a los clientes lo mejor en productos alimenticios y vinos selectos, asà ­ como lo concerniente a las necesidades relacionadas en un ambiente sin paralelo para el consumidor, (University of Phoenix, 2008, prrafo 3). KFF esta presidida por Kathy Kudler que cuenta con tres gerentes de tienda; Laurie Priest, gerente de la tienda de Del Mar, Juanita Là ³pez y Kent Vesper, gerentes de las tiendas de Encinitas y La Jolla respectivamente. Cada gerente es responsable a su vez por cada una de sus tiendas en particular. Los productos y servicios ofrecidos estn divididos por departamentos tales como: 1. Departamento de panaderà ­a y reposterà ­a recià ©n horneada, que a su vez es dirigido por un gerente y seis asistentes. 2. Departamento de productos agrà ­colas y alimenticios, que a su vez es dirigido por un gerente y dos asistentes. 3. Departamento de carnes, pescados y mariscos frescos, que a su vez es dirigido por un gerente y cinco asistentes. 4. Departamento de quesos, vinos y licores, que a su vez es dirigido por un gerente y un asistente. Como parte de la misià ³n empresarial de KFF, provee las mejores selecciones en sus productos y reclutar el mejor personal para poder ofrecer a cada consumidor una experiencia placentera, se asignà ³ a Ivonne Reynolds como directora de operaciones, la cual recaen las responsabilidades de compras e inventario. Brenda Wagner, directora de administracià ³n y recursos humanos, se enfoca en el reclutamiento de personal diestro y servicial. Finalmente, Harvey Stephens, actà ºa como director de contabilidad y finanzas. El grado de innovacià ³n que KFF hace referencia al desarrollo de sus actividades de negocio pueden maximizarse con el uso del Internet. Cada dà ­a surgen nuevas plataformas que posibilitan a KFF descubrir las funcionalidades y servicios que el Internet ofrece, facilitando que estas ventajas no sean sà ³lo para una pequeà ±a elite. Mediante la planificacià ³n colaborativa entre KFF y sus suplidores, la empresa puede comunicarse y compartir inventarios. De esa forma, los proveedores saben que productos se estn moviendo ms y pueden reaccionar a las necesidades de KFF rpidamente. Un catlogo virtual expone todos los productos y servicios que KFF puede ofrecer y siempre con la flexibilidad de acomodar cualquier orden que los clientes necesiten ubicar. El à ©xito de estas iniciativas demuestra que a veces las soluciones aparentemente mas sencillas para el usuario son las que logran imponerse y que en numerosas ocasiones la creatividad gana la partida a la sofisticacià ³n, (Subirana, 2007). El Internet fomenta la capacidad del comercio electrà ³nico para KFF a travà ©s de reduccià ³n de costos de distribucià ³n, la posibilidad de acceder a nuevos mercados y la posibilidad de un gran impacto en su mercado actual y sobreponer sus ventajas comparativas de servicio y excelentes productos frescos sobre sus competidores. Las barreras de ingreso al mundo del comercio electrà ³nico son relativamente bajas, (Thompson Jr. Strickland III, 2004). El costo de establecer una pgina en el Internet y sus programas bases no son costosos. De esa forma, es ms fcil para KFF navegar por el Internet y escoger diferentes diseà ±os y modificarlos. Esto ayuda a reducir costos de diseà ±o y tiempo del programador. Finalmente, el Internet puede ayudar a maximizar los costos operacionales de KFF mediante el control absoluto de sus inventarios, embarques y ventas diarias. La utilizacià ³n de data real y al segundo, es una gran herramienta para que sus directores y gerentes puedan tomar decisiones sabias y con fundamento ayudando a maximizar los recursos laborales que eventualmente, impactan positivamente a sus clientes. Citas bibliogrficas Daccach, J. C. (July 3, 2007). Opinià ³n-Principal factor para tener à ©xito en Internet; [Source: El Reporte Delta]. NoticiasFinancieras, pg.1. Retrieved September 28, 2008, from ProQuest Newsstand database. (Document ID: 1298857651). Davis, K. Newstrom, J.W. (2003). Comportamiento Humano en el trabajo, (e.11) Capitulo 7: Liderazgo. [Coleccià ³n de libros electrà ³nicos de la University of Phoenix]. Mà ©xico: McGraw-Hill Interamericana, Consultado el 28 de Septiembre de 2008 en la University of Phoenix, rEsource. Herramientas de aprendizaje: Sitio Web del Curso de MBA507. Subirana, B. (April 4, 2007). Second Life, ms all de la tecnologà ­a. Economista. Retrieved September 28, 2008, from Latin American Newsstand database. (Document ID: 1249448021). Thompson Jr., A. Strickland III, A. J. (2004). Administracià ³n estratà ©gica, (e.13) Capitulo 7: Modelos y estrategias de negocios en la era de internet. [Coleccià ³n de libros electrà ³nicos de la University of Phoenix]. Mà ©xico: McGraw-Hill Interamericana, Consultado el 28 de Septiembre de 2008 en la University of Phoenix, rEsource. Herramientas de aprendizaje: Sitio Web del Curso de MBA507. University of Phoenix. (2008). Kudler Fine Foods [Misià ³n empresarial]. Consultado el 28 de Septiembre de 2008 en la University of Phoenix, rEsource. Herramientas de aprendizaje: Sitio Web del Curso de MBA507. Research Papers on Las generalidades de la gestià ³nResearch Process Part OneAnalysis of Ebay Expanding into AsiaGenetic EngineeringTwilight of the UAWLifes What IfsThe Project Managment Office SystemInfluences of Socio-Economic Status of Married MalesPETSTEL analysis of IndiaRelationship between Media Coverage and Social andMarketing of Lifeboy Soap A Unilever Product

ACT Hand Scoring Should You Order It

ACT Hand Scoring Should You Order It SAT / ACT Prep Online Guides and Tips Did your ACT scores seem way out of whack? Enough that you think there was an error in the scoring process? It’s possible to get your test rescored manually for a fee. Read on to find out why you might decide to use ACT Score Verification (also known as ACT Hand Scoring) and how you can order it. What Is Hand Scoring? The multiple choice sections on the ACT are scored with scantron machines, which is why there's so much emphasis on filling in the answer sheet accurately with dark marks.Machines may interpret a stray mark as an answer or penalize you because you accidentally skipped a question and bubbled in a string of answers in the wrong spots.If you order score verification, your test will be reviewed again by a human being to see if there was a problem in the original scoring process or if you made an obvious bubbling error that would be apparent to a human grader but not a scantron. ACT score verification is available for both the multiple choice and essay sections of the test (if you did ACT Writing).It’s a $50 fee for the multiple-choice section, $40 for the essay section, or $90 for both.If you're at all familiar withSAT Hand Score Verificationor have ordered it before, you should know thatACT Score Verification differs in one important way.For SAT Hand Scoring, there's the risk tha t your score will go down if mistakes in scoring are found that aren’t in your favor.For the ACT, your score will either stay the same or go up- ordering hand scoring can’t hurt your score, it can only hurt your wallet.If the ACT does find a scoring mistake that works in your favor, your scores will be changed and the fee will be refunded. Special note: In past years, ordering ACT essay score verification meant that your essay was reread and rescored (if your score was higher; otherwise, your score stayed the same). Now, however, getting score verification for your ACT essay only gets you confirmation your essay was scored by two independent graders (or by a third grader if the two scores differed by more than a point in any domain) and that your essay was scanned correctly. When Should You Use Score Verification? Here are a couple of scenarios where you might consider Hand Scoring as a score verification method: Scenario 1: Your Overall Score Was Very Different from What You Expected How different is â€Å"very different†?If you get a score on one or more of your ACT sections that is five or more points lower than the score you consistently earned in practice sessions, you might consider hand scoring. With this much of a discrepancy, it’s likely that something weird happened in the scoring process or you did something on the answer sheet that caused your answers to be read inaccurately. Scenario 2: You Missed Many â€Å"Easy† Questions That You Would Normally Get Right If you look at your score report and notice that you got a bunch of questions wrong in subjects that you usually ace, you might start to question your scores.However, you should consider ordering the Test Information Release, described in my next point, to verify the difficulty level of the questions you missed before jumping to any conclusions. Scenario 3: You’ve Investigated Other Score Verification Options The ACT Test Information Releaseprovides a more comprehensive view of the test. It includes all the questions, a list of your answers, the answer key, scoring instructions, and the writing prompt and scoring rubric along with your scores (if you took the ACT with Writing).You can order the Test Information Release for $20 (per test date). This will either clear up confusion about your scores or verify that something went wrong and you need to order ACT Score Verification (hand scoring). When Should You NOT Use Hand Scoring? You shouldn't jump right to hand scoring if your score is only a little lower than you expected it to be. Say you get your scores back and you did about four points worse than you expected on one or more sections. Do you order hand scoring?I would say that’s the tipping point. A discrepancy between expectations and reality of four points or less is probably not significant enough to indicate an error in scoring. If you're still concerned, you should go ahead and order the Test Information Release so you can understand your scores better.Try not to jump right to blaming the test if you score a couple points lower than you expected- it’s not going to help you learn from your mistakes! The best place to learn is on top of a pile of past mistakes. How to Request Hand Scoring To have your test hand scored, just fill out this form and mail it to the ACT within 12 months of your test date.Include your name (the original one that you wrote on the test), address, and date of birth along withthe ACT ID, testing location, and test date from your original score report. You should also include a check made out to ACT Student Services with the applicable fees for whichever part of the test you want hand scored.Remember, multiple choice is $50, essay is $40, and it’s $90 for both. Mail everything to this address: ACT Student ServicesP.O. Box 414Iowa City, IA 52243-0414 You can also request to be in the room for the hand scoring process for your multiple choice questions (but without access to the test questions) at a location designated by the ACT. If you would like to do this you should mail this request in writing along with everything else, although I would say that unless you are super paranoid about them messing up the scoring again you probably don’t want to bother with it. The ACT says that additional fees apply, but the information they give about it is very vague- you may want to call them to find out more details before you decide to put in a request. The number for ACT Customer Service is 319-337-1270. After you mail your score verification request, you should get a letter back from the ACT in three to five weeks. It will tell you whether your original scores were confirmed or changed due to an error in the original scoring process. If they were changed, you and all your designated colleges will get new score reports free of charge. What's Next? Are you wondering whether you should take the ACT again? Learn how many times you can take the ACT and how to decide whether you should retake it. Are you just unsure of when you should take the ACT? Use this guide to the best test dates to make an informed decision. If you need to go over your mistakes on your last ACT to prepare for the next test date, check out this article for advice on the best way to review. Want to improve your ACT score by 4 points? Check out our best-in-class online ACT prep program. We guarantee your money back if you don't improve your ACT score by 4 points or more. Our program is entirely online, and it customizes your prep program to your strengths and weaknesses. We also have expert instructors who can grade every one of your practice ACT essays, giving feedback on how to improve your score. Check out our 5-day free trial:

Comparative Approaches in Employment Relations Assignment

Comparative Approaches in Employment Relations - Assignment Example termines the country’s labor force and the rate of either employment or unemployment is equally dependent on this vital body in a country’s structure (Bamber, Lansury and Wailes, 2011, 61). The employment relations, also cuts across the way in which the employees are treated by the government and their employers. It also stipulates the way in which the employees can fire their grievances and the rights and privileges entitled to them. However, the HRM and the ER vary from country to country depending on the development status of the nation. It is determined by various factors that hold the country’s GDP and economic status of a country Bamber (2011, 112). Basing our comparison between two nations of different economic status, therefore, it is important to narrow our discussion on Nations of two different classes. That is a developed country and a low developed country or rather an underdeveloped country (Barry, 2011, 91). To begin with, a developed country is a country in which it is has fully or effectively utilized its existing natural resources and whose per capita income is relatively high and most of its citizens are able to acquire or live according to the trends of standards of living. On the other hand, an underdeveloped country is one which has not utilized its existing natural resources, and the level of standards of living is low. The GDP of such a country is too low, and the per capita income is also too low. To consider and compare the HRM and ER in such countries has a number of factors to consider. In a developed country such as Australia, which has a stable economy and a high GDP, the human resource management is well established. Australia is known to be the twelfth nation in the economic power as far as GDP is concerned as well as total wealth of 6.4 trillion dollars. It has a population which is approximately 23.13 million, and the labor force is approximately 12.15 million. In such a country, the levels of employment are high. In such a

Finance Policies and Strategies of Multinational Enterprise Essay

Finance Policies and Strategies of Multinational Enterprise - Essay Example Actively managing financial risks allows us to continue doing what we do best – designing and selling great products – instead of just reacting to problems linked to events beyond our control. These risks arise due to the unavoidable effects that some political and natural events have on currency exchange and interest rates. When one of the countries where we operate slides into an economic crisis, for example, a government might impose exchange or currency controls, affecting our cash flow, profits, and funds transfer mechanisms and creating potentially adverse effects on our finances and stock price. These risks arise both from the likelihood that something good will not happen or that something bad will happen (Read and Kaufman, 1997, p. 112). Financial risks are those that threaten the efficiency of the worldwide movement of money and profits amongst our affiliated companies through internal transfer mechanisms (Shapiro, 2003, p. 26). We are exposed to this risk that has several types, amongst which the most relevant given the events just outlined are currency, credit, inflation, and market risks. Although most of the critical events are non-political in nature, their effects on the respective national economies may cause political risks that we must address. Our cost of capital and debt is affected by fluctuations in exchange and interest rates, inflation, and stock market volatility. We also need to manage transaction exposures, the possibility of incurring gains or losses on sales, purchases, and investment decisions entered into and denominated in foreign currencies (Eiteman et al., 2004, p. 155-176). International Finance Strategies Risks are uncertainties and sources of anxiety we need to deal with. Most business and financial risks are caused by outside events and changes in economic variables (GDP growth, commodity prices, interest rates, foreign exchange rates, and stock prices) over which we have virtually no control (Froot et al., 1994). Our inability to control these events, however, does not mean we cannot manage their effects.We manage the consequences of financial risks by adjusting our operational, financial, and investment strategies. Some risks we can take and others we cannot.